Village of Ocular quest bug
 

I am in the Dwarven Lands and there is a quest to clear a village that is over-run by demons. Unfortunately I can not engage the demons even though I get the crossed swords symbol. Nothing happened when I run up to them and click on them. They are at the entrance to the village and you can not go around them. It appears to be two separate demons army and they are not moving and are complately blocking the entrance.
I tried using Dev mode and kill all the enemy on the map but that does not progress the quest. Presumably, it didn't trigger sort of a quest script.

Has anyone else had this problem? Is there a workaround or fix?